Hi all,

This is probably a simple question for you re; the 50% tax payment on account that is now in force.

Say my tax bill for 06/07 was ?000, I also have to pay 50% in advance, making my tax bill for that period ?000.

Ok, so lets say my tax bill for 07/08 is the same at ?000, 50% in advance, making ?000 again.

What happens about the ?000 I paid in advance in 06/07?? is that not offset in 07/08??

Many thanks for your help.
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Your tax bill for 06/07 was ?,000 so by the 31st January 2008 you had to pay ?,000 to HMRC (?,000 plus 50% on account). By 31st July 2008 you would need to pay another ?,000 on account to HMRC. So by the end of July you have paid ?,000 to HMRC. ?,000 for tax due on income earned in 06/07 and ?,000 towards tax due on income earned in 07/08.

Your tax bill for 07/08 is ?,000. You are required again to pay the tax plus 50% on account, so ?,000 BUT you have already paid ?,000 of the ?,000 due so by the 31st January 2009 you would need to pay ?,000 to HMRC followed by another ?,000 by 31st July 2009. And round the cycle goes.......
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Hi all,

This is probably a simple question for you re; the 50% tax payment on account that is now in force.

Say my tax bill for 06/07 was ?000, I also have to pay 50% in advance, making my tax bill for that period ?000.

Ok, so lets say my tax bill for 07/08 is the same at ?000, 50% in advance, making ?000 again.

What happens about the ?000 I paid in advance in 06/07?? is that not offset in 07/08??

Many thanks for your help.



Hi

?,000 tax for 06-07 payable in Jan 08 plus ?,000 on account for 07-08, payable ?,000

?,000 on account payable in July 08

?,000 tax for 07-08 payable in Jan 09, offset by the ?,000 already paid in advance, but ?,000 payable in advance for the next year in Jan 09 and Jul 09. Payable Jan 09 ?,000

The answer is yes!!!

Regards
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Brilliant.

Many thanks for your time and help.
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